Decision to remove the provisions relating to Supplemental Balancing Reserve and Demand Side Balancing Reserve from National Grid Electricity Transmission plc (‘NGET’)’s licence

Licence modification

This open letter sets out our decision to remove SBR and DSBR references from NGET’s licence.

In March 2017 the Gas and Electricity Markets Authority decided to remove the Supplemental Balancing Reserve and Demand Side Balancing Reserve cost recovery arrangements for 2017/18. This decision removed the ability of NGET to recover any costs associated with procuring or operating these services in Winter 2017/18. Following the completion of the cost recovery process for 2016/17 Winter, we consulted on removing the remaining provisions from NGET’s licence. This consultation closed on 8 September. The feedback we reecied was supportive of our proposals. We are now issuing a direction to make the necessary changes. These will take effect from 25 November.